Govt doubles import duty on sugar to 100%, hikes chana to 40%

The government has doubled import duty on sugar to 100 per cent and raised duty on chana to 40 per cent to protect domestic farmers. At present, customs duty or import tax on sugar is 50 per cent and on chana is 30 per cent.

Central Board of Excise and Customs (CBEC) has issued notification in this regard. The move is aimed at curbing cheaper imports and ensure remunerative prices to domestic growers.

The CBEC said, the higher tax has been imposed with immediate effect and without an end date.

The sugar industry has been demanding hike in import duty as ex-mill rates have fallen below the cost of production, affecting their ability to make cane payment to farmers on time.

In case of chana, the government has raised import duty to 40 per cent as it wants to contain inward shipments in view of record production of pulses to nearly 23 million tonnes this year.